Volkswagen Group of America - Business and Product Update including Preview of the All-New Jetta Hinrich J. Woebcken, President & CEO Volkswagen ...
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Volkswagen Group of America - Business and Product Update including Preview of the All-New Jetta Hinrich J. Woebcken, President & CEO Volkswagen North American Region Dr. Matthias Erb, Chief Engineering Officer North American Region, Head of Product Strategy December 12, 2017, New York City
DISCLAIMER The following presentations contain forward-looking statements and information on the business development of the Volkswagen Group of America. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast. Volkswagen AG and its subsidiaries (together the "Volkswagen Group") currently face additional risks and uncertainty related to pending claims and investigations of Volkswagen Group members in a number of jurisdictions in connection with findings of irregularities relating to exhaust emissions from diesel engines in certain Volkswagen Group vehicles. The degree to which Volkswagen Group of America may be negatively affected by these ongoing claims and investigations remains uncertain. Consequently, a negative impact relating to ongoing claims or investigations, an unexpected fall in demand or economic stagnation in our key sales markets, such as the USA will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the Euro, US dollar, sterling, yen or other currencies. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
Empowered local Management, increases decision-making autonomy and customer focus
based on local requirements
New Regional Structure
Volkswagen Brand Board – Global (Wolfsburg)
Volkswagen
CEO F V P B E HR … Brand
VW NAR Region
Board
CEO F V P B E HR … NAR
Volkswagen
de México
Volkswagen
of America
Country
Chattanooga
Operations
Volkswagen
of Canada
US Portfolio Strategy: Growing in core segments, optimization and a major transfer to
electrification
Enlarging Product portfolio and optimizing Transfer to Electrification / new customer
Strengthening position in core segments
powertrain experience
SEDAN SUV
Compact
Jetta Tiguan Atlas Tiguan LWB ID Buzz ID Crozz
Midsize
Passat Atlas Midsize-SUV 5-seater Compact-SUV
• Compact/Midsize SUV and Sedan with >1m units • Core segments / SUV-offensive • Introduce MEB BEVs as key pillar of brand
per segment transformation
• launches in 2017 Atlas and Tiguan LWB
• Best in Class B-to-B Warranty successfully • Competitive HEV powertrains to contribute
• Midsize-SUV 5-seater and Compact SUV derivate to compliance and to support smooth
launched
to double up in Compact - and Midsize-SUV transition to electrification
• Competitive Pricing strategy to be implemented by segments
MY19 for all core models
• Streamlining / Downsizing of engine and
• Localized production and shorter life cycles transmission portfolio
Improved customer value and strengthened Healthy product portfolio as basis for
E-Mobility rollout
sweet-spot positioning profitable growth plans
Strong profitable product cadence, compliance and successful transformation into e-mobility
Volkswagen with strong performance in the period until November 2017
Monthly Volkswagen Sales Performance 2017 versus 2016 Industry versus Volkswagen YTD1)
´000 units
vs. previous
8%
+17% +13% +3% +3% +4% +15% -6% +9% +33% +12% -2% year
35
32.0 32.1 Total Market
30.0 29.2
30 27.7
27.6 27.6 27.4 27.1 -2%
25.1
25 23.5
Passenger Cars 1%
20
15
-10%
10
51%
5
Light Trucks
0 5%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
1) Period from January to November 2017 compared to same period of previous year
Volkswagen brand – starting the turnaround in the US with several new products in 2017
Deliveries to US customers, ‘000’ units SUV offensive #1 New Sedans SUV offensive #2
2017 2018-19 2019-21
500
Atlas Jetta Midsize SUV 5s
250
Tiguan Passat Compact SUV
Halo
0 MEB SUV
2012 2013 2014 2015 2016 2017 Refreshed Golf Arteon
Market At least 2 major product launches per year to ensure continuous product
3.0 2.6 2.2 2.0 1.8
Share % news and sustainable growth
North American Market 2017/20201)
Stagnation in USA and Canada is expected, however at a high level; Mexico will probably increase slightly
million units
North America1) Canada1)
-2.7% -0.6%
21.0 20.4 20.0
+4.6% -2.3%
1.9 2.0 1.9
2016 2017 2020 2016 2017 2020
Mexico USA
-3.4% -0.7%
17.4 16.8 16.5
-3.2% +2.2%
1.6 1.6 1.7
2016 2017 2020 2016 2017 2020
Actuals Forecast
Data source: IHS Automotive (10.2017) | 1) Volume for North America includes light commercial vehicles (definition ‘Light Vehicles’) | growth 2017-2020 = CAGR
Positioned for success: Jetta`s competitiveness significantly improved - trigger points
match Volkswagen brand values
SMART TO OWN FUN TO BE IN WELL CRAFTED
• Customer value improved with competitive
pricing and optimized vehicle content: majority
• Combination of progressive design and everyday
of volume in A-sedan sweet spot
usability with a high quality touch
• Perceived reliability improves with 6-year and feel
Bumper-to-Bumper Warranty
• Shorter lifecycle to match competitors and
• Improved fuel consumption contributes finance cycles
to achieving Total Cost of Ownership
• The only German-engineered sedan in the
on par with competitors (in Top 3)
segment
• Advanced technology offered with BIC
connectivity & infotainment
• Innovative standard safety and driver
assistance features, e.g. Front Assist & Blind
Spot detection
• Enhanced driving dynamics and superior
comfort features
Volkswagen brand quality ratings improve supported by Jetta
2017 J.D. Power Initial Quality Study (IQS)
• Jetta second best model in the
VW Improved by 11ppH YoY IQS Trend ‐ VW vs. Industry
compact segment (out of 17)
128 123
135 131
124 128
123
• Jetta improved by 18 problems 120
104
per 100 vehicles (18%) to 82 ppH 93 105
97
115 117
110 108 112 104
103 93
• Jetta receives all 5 Power Circles
2010 2011 2012 2013 2014 2015 2016 2017
(rated “Among the Best”) for Overall
IQS 2014 IQS 2015 IQS 2016 IQS 2017 Volkswagen Industry
Quality, Mechanical Quality, Interior
and Exterior Quality
2017 J.D. Power Vehicle Dependability Study (VDS)
• Jetta’s dependability improved 11% YoY, now above industry average
Responsibilities for Toolkit Architecture shared within the Volkswagen Group
MQB MEB MLB MSB
Modular Modular Electrification Modular Longitudinal Modular
Transverse Kit Kit Kit Sports Kit
A00 A0 A B C D E
Small Sub-Compact Compact Midsize Fullsize
Vehicle classes
Range of MQB: From Sub-Compact (Polo) up to Midsize-SUV (Atlas)Rollout of MQB in the North American region to realize economies of scale and efficiencies
Local MQB production is increasing from around 10% to > 80% midterm, positive impacts:
• Increasing capacity utilization
• Improving fixed costs
All-new SUV
Refreshed Golf
• Higher investment efficiency as MQB basic
All-new SUV
investments are already complete
All-new Tiguan
All-new Jetta
Golf Sportswagen
All-new Atlas
2014 2015 2016 2017 2018 2019 2020
NAR production volume using MQB (units)In international comparison, the U.S. have the strictest, most complex fuel economy
regulations
Two regulations: GHG (CO2)
Legislation One regulation for CO2
and CAFE (fuel economy)
One regulation for CO2
Parameter Mass [kg] Footprint [ft²] Mass [kg]
Unit [g/km] [g/mile and mpg] [l/100km]
GHG: Negative account for
95€ per gram over the limit per more than 3 years: Name & Shame List,
Penalty vehicle homologation stop Homologation stop
CAFE: $140 per mpg*
* Subject of mid-term review in 2018Upstream regulation adds CO2 value to electric vehicles
2017
2017 2018
2018 2019
2019 2020
2020 2021
2021 2022
2022 2023
2023 2024
2024 2025
First 200k* vehicles with 0 g/km
All electric vehicles with 0 g/km after that vehicles have upstream
• After 200k, the upstream value adds CO2
to an electric vehicle
• CO2 amount is based on power consumption
of the vehicle
• With the upstream regulation,
electric vehicles have a CO2 value
of approximately 50-70 g/km
*Exceptions applyBattery costs will decrease significantly by 2020
€ / kWh
300
MQB
200
MEB Target:
< 100€ / kWh
100
battery system
battery cell
2013 2020The Modular Electrification Architecture (MEB) is highly flexible to the benefit of customers
different body shapes
larger wheelbase
short overhangs
more space in the back
And higher seating position
bigger
wheel diameter
no center tunnel central computer unit
rear drive trunk volume
+ 4WD ~ ICEThe Modular Electric Architecture offers a higher range
Increases amount Offers variable Battery Capacity based
of space in the interior different driving demands
Guarantees the best Electrical range starting roughly
design and positioning at 200 miles with higher battery ranges
for the batteries optional + High Performance
Charging
Ensures optimal vehicle equipment
MEB is Volkswagen’s for electric vehicle requirements
flexible modular system exclusively by taking into account what axles,
for Battery Electric Vehicles drive units, wheelbases, and weight
(actually a matrix of common parts) ratios need to look likeVolkswagen brand in the U.S. will continually expand the BEV lineup starting in 2020
SUV
I.D. Crozz
MPV, CUV, ...
2020 1st Wave 2nd Wave 2025
Derivatives Derivatives
Sedan
I.D. Buzz
1) BEV: Battery electric vehicleOur customers need different charging solutions for their typical journeys
Daily Charging Destination Potential compensation
short/ medium @home & to home & work
use charging
@work
Charging
Use
High power High power
Cases
charging along charging in
highways inner cities
Long distance Next envisioned
driving D HPC use case
C D
CThe BEVs1) will include all features of Volkswagen’s future mobility strategy
Smart Automated Intuitive Connected
Sustainability Driving Usability Community
Development of Safer and more Intuitive to operate Interconnect humans,
innovative comfortable displays cars and the environment
high-volume by means of and control with a Volkswagen
electric car models autonomous driving concepts user identity (Cloud
Storage)
Zero-emissions electric Detect road users with Augmented reality head-up Digital Key + Driver
powered vehicle by using laser sensors, ultrasonic display, touch sensitive Recognition, Guide &
the MEB sensors, radar sensors, steering wheel, Intuitively Inform, App Connect,
side area view & front operated cockpit Security & Services
cameras (no mechanical
controls/buttons) 1) BEV: Battery electric vehicleSummary
• We work to regain trust and rebuild the brand.
• We want to grow in the US and become a relevant
volume brand, with a full line of cars and SUVs.
• We expect to break even in 2020.
• Volkswagen’s electric mobility plans are among
the most extensive in the industry. We have the
global reach to become a leader in e-mobility.You can also read
